Australia’s Age Pension Rising by $1,800 in April 2025 – Check New Rates & Eligibility!

Age Pension is a significant source of income for aged people in Australia, bringing them financial security and stability post-retirement. With the growing inflation in mind, the government has made a decision to raise the pension for the eligible citizens from March 20, 2025. This pension boost will bring an extra support of up to $1,800 a year.

This article will give you all the information regarding this pension rise, eligibility, payment schedule and application procedure.

Overview of Pension Increase

The reported $1,800 rise is not a lump sum but the outcome of routine pension indexation, which will be implemented fortnightly throughout the year.

This rise has been indexed according to inflation and average wages, thereby enabling seniors to meet essentials like food, accommodation, health care and transport.

New Pension Rates for March 2025

CategoryFortnightly PaymentEstimated Annual Total
Single Pensioner$1,149.00$29,874.00
Couples (Joint)$1,732.20$45,037.20

This amount consists of the base pension rate, the Energy Supplement and the Pension Supplement.

Reason for pension increase

This rise is included in the March 2025 indexation, based on the Consumer Price Index (CPI) and male total average weekly earnings (MTAWE).

  • Single pensioners: $4.60 per fortnight increase
  • Couples (joint): $7.00 per fortnight increase
  • Annual effect: Approximately $1,196–$1,800 more per year depending on circumstances

Age Pension eligibility criteria

You will need to satisfy some eligibility requirements in order to be eligible for Age Pension, which include age, residence, income and assets.

1. Age requirement

  • The applicant should be at least 67 years of age.

2. Residence requirement

  • The applicant should be an Australian citizen or permanent resident.
  • She or he must have lived in Australia for at least 10 years, of which 5 years must be continuous.

3. Income Test

Income thresholds to get the maximum Age Pension:

  • Single: Income per fortnight ≤ $212
  • Couple (joint): Income per fortnight ≤ $372

Note: The first $300 of income from work is exempt under Work Bonus.

4. Assets Test

Assets thresholds to get the maximum pension:

  • Single householder: Assets should be less than $314,000.
  • Couple (joint) householder: Assets should be less than $470,000.

More asset limits are available for people who are not homebuyers to consider their housing costs.

How to apply for Age Pension?

Step 1: Gather the necessary documents

  • Proof of identity (passport, driving licence)
  • Proof of residence
  • Income and asset information

Step 2: Set up a myGov account

  • Connect it to Centrelink.

Step 3: Submit online application

  • Centrelink → Make a Claim → choose Age Pension.
  • Upload all necessary documents.

Step 4: Wait for assessment

  • Centrelink will assess your application and let you know the result.
  • If approved, payments will start in the next scheduled cycle.

When will the new pension amount be paid?

  • New rates effective: 20 March 2025
  • First payment date: Late March or early April 2025
  • Next adjustment: 20 September 2025

Note: Pensioners overseas receive their monthly payment and their entitlement could be different.

Additional assistance for pensioners

Qualifying pensioners might also get certain additional assistance, such as:

  1. Pension Supplement: Covers costs of electricity and gas, telephone and doctor visits.
  2. Energy Supplement: Covers increases in the cost of energy.
  3. Concession Cards:
  • Pensioner Concession Card: Discounts on medical care, transport and energy.
  • Commonwealth Seniors Health Card: For those not getting the Age Pension.

Common mistakes to avoid

  1. Applying late: Apply 13 weeks before you turn 67.
  2. Giving incorrect financial information: This could lead to delay or reduction in payment.
  3. Failure to report travelling overseas: Being overseas for an extended period of time can influence eligibility.

Conclusion

The $1,800 pension boost in March 2025 will be a lifeline to help keep pace with increasing living expenses.

Ensure you are well aware of eligibility rules, payment times and support services available so you can maximize this entitlement.

The right information and planning can help every eligible pensioner receive their entitlement.

FAQs

Q1. When does the pension increase take effect?

From March 20, 2025.

Q2. How much is the increase per year?

Up to $1,800 annually.

Q3. Who is eligible for the increase?

Age Pension recipients meeting age, residency, income, and asset requirements.

Q4. How often is the pension paid?

Every fortnight.

Q5. Where can I apply for the Age Pension?

Online via Centrelink through myGov.

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